Bankruptcy Often Follows Divorce

Domestic situations sometimes lead to financial trouble, as when one parent abandons the family, leaving only one parent to provide child care and shoulder the expenses. Sometimes the reverse is true − financial burdens lead to serious marital problems, as occurs when one spouse takes on huge amounts of credit card debt. If circumstances like these are leading toward divorce and an unsustainable financial position, it may be time to consider bankruptcy.

At Minion & Sherman, our Essex County, New Jersey, bankruptcy and divorce lawyers provide high-quality bankruptcy and divorce representation to clients throughout northern New Jersey. Our attorneys bring together more than 40 years of experience, the vast majority of which have been dedicated to family law and bankruptcy. Please call 973-559-5791 or contact us online to set up your free initial consultation.

The Key Right Now Is Long-Term Thinking

Every couple's situation is different and should be carefully analyzed to determine whether to file bankruptcy, and if so, when? Frequently, we recommend filing bankruptcy prior to initiating divorce proceedings. By dealing with debt through either Chapter 7 or Chapter 13 before divorce, two important things are accomplished:

  • Taking care of debt, which is one less thing to dispute during the divorce
  • Allows you to make a joint bankruptcy filing, which is beneficial in many situations

Because we handle both divorce cases and bankruptcy matters, we can assist you in the event that you decide to file bankruptcy while the divorce is ongoing. We also frequently represent people whose divorce is already finalized and are now going through hard financial times. Moving into a single-income household is overwhelming for some, so bankruptcy may be the way out.

There Are Some Limitations to Bankruptcy

Part of Minion & Sherman's commitment to honest service involves providing every client with full information. You should know that if you file bankruptcy during or after divorce, you could end up being responsible for debts that were assigned to your spouse during divorce. If your name is on a loan, that's all the creditor cares about. If your ex-spouse stops making payments, the creditor can come after you.

Child support and alimony payments are not optional. You cannot use bankruptcy to escape these responsibilities.

Contact Us to Learn More in a Free Consultation

To schedule a free initial consultation with an experienced New Jersey bankruptcy and family law attorney, please call 973-559-5791 or contact us online.

We are a debt relief agency. We help people file for relief under the U.S. Bankruptcy Code.